search

NEST-Protocol / NEST-Improvement-Proposals

NEST Improvement Proposals
2 stars 2 forks source link

What are the benefits of quoting two prices？ #22

Open lemmaxs opened 3 years ago

lemmaxs commented 3 years ago

NEST 3.5 requires two prices. What is the difference between this and the previous one? Why not quote more than two prices?

unrelenting-d1x commented 3 years ago

I think the two price quotation would also increase quotation miners( and verifiers)'s skin-in-game of the NEST ecosystem. As it would require them to staking NEST while they are quoting a price. As the quoting asset's value increase, the amount of NEST required will also increase. The proportionally increased NEST staking requirement would also level up the miners' skin-in-game.

It prevent a whale to use his advantage to attack the price. For example, a whale could use his capital advantage to quote without needing any NEST

Also a second price-pair ( quoted in NEST ) will generate a on-chain price for NEST. That can facilitate many use cases such as DAO buyback feature mentioned by the 3.5 announcement